Verizon is offloading its media entities to like Yahoo and AOL to Apollo Global Management, the wireless network announced in a press release. The agreement between both parties will see Verizon receive $5 billion from Apollo and keep a ten percent ownership stake of the new company.
“We are excited to be joining forces with Apollo,” Guru Gowrappan, CEO of Verizon Media, said. “The past two-quarters of double-digit growth have demonstrated our ability to transform our media ecosystem.”
“With Apollo’s sector expertise and strategic insight, Yahoo will be well-positioned to capitalize on market opportunities, media, and transaction experience and continue to grow our full-stack digital advertising platform. This transition will help to accelerate our growth for the long-term success of the company.”
This sale is another symbol of Verizon looking to steer away from media and focus on its wireless network and internet provider business. Recently, Verizon has sold HuffPost to BuzzFeed and sold off Tumblr.
“We are big believers in the growth prospects of Yahoo and the macro tailwinds driving growth in digital media, advertising technology, and consumer internet platforms,” David Sambur, Senior Partner and Co-Head of Private Equity at Apollo, said.
“Apollo has a long track record of investing in technology and media companies, and we look forward to drawing on that experience to help Yahoo continue to thrive.”
Verizon Media purchased AOL for $4.4 billion in 2015 and Yahoo for $4.5 billion in 2017, so in less than six years, both media entities saw a sheer drop in valuation by the company. Verizon and Apollo should finalize the sale of AOL and Yahoo in the second half of 2021.
Eduardo Razo is the Assistant Content Editor for BNM, which includes writing daily news stories on the news media industry. He can be found on Twitter @eddierazo_ or you can reach him by email at eddie1991razo@gmail.com.
